Under the settlement agreement with the Federal Trade Commission, subject to final approval, Mylan is set to sell the seven generics to New Jersey-based Alvogen Group Inc.
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To settle anti-competitive charges by the FTC, Mylan has said it will sell the rights and assets tied to seven generic drugs, according to a statement.
In its hostile bid for Perrigo, Mylan is also pushing up against antitrust laws.
Mylan is offering $75 in cash and 2.3 shares of Mylan for each Perrigo share. Mylan requires the support of 80% of shareholders for the takeover. This is driven by a few important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover.
The attempts by generic pharmaceutical manufacturer Mylan N.V. “We are very confident that Perrigo shareholders will support this transaction by tendering their shares by 8:00 am ET on November 13, 2015”.
Mylan Executive Chairman Robert Coury reiterated on Tuesday that if the deal with Perrigo goes through that Mylan would allow shareholders to vote to scrap both practices.
In response to these concerns, Mr. Coury said on Tuesday that if the Perrigo deal is finalized, Mylan would hold a shareholder vote on changing its corporate governance practices. The three are: Acyclovir for slowing the growth and spread of the herpes virus; Hydromorphone hydrochloride for moderate to severe pain in narcotic-tolerant patients; and Scopolamine for preventing symptoms associated with motion sickness, and helping patients recover from anesthesia and surgery.
Headquartered in Ireland, Perrigo manufactures over-the-counter products and supplies infant formulas for the store brand market. Netherlands-based Mylan has previously been criticized over a poison pill in its Dutch structure known as “stitching” – an independent body used to fend off hostile takeovers. “Mylan merely catalogues areas where serious reform is needed, and offers highly contingent and illusory promises without any assurance that any change will ever be made”.
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WSJ reports that Mylan targets $800 million in savings a year, but Perrigo, which tried to block the offer, has challenged how Mylan would achieve the savings. On September 14, 2015 Mylan officially commenced its formal offer to acquire all outstanding ordinary shares of Perrigo.
